TaxTMI 
TaxTMI 
2023 (6) TMI 1519
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....uced before Ld. A.D and also before CIT Appeals but same was not considered either by ITO or CIT Appeals. Hence this addition deserves to be deleted. 4. Regarding Addition of Rs 49,12,092/- mode on account of (Unverifiable Sundry Creditors, we have to submit that Confirmation from Major Creditors along with copy of Account and Complete Address were produced before Ld. A.0 and also before CIT Appeals. But same was not considered either by Ld. I.T.O or CIT Appeals. So this addition deserves to be deleted. 5. CIT Appeals was wrong in upholding Addition of Rs 35,26,549/- made on account of Non-furnishing of Books of Account, Bill and Voucher. However Books of Account, copy of Ledger account of major expenses along with vouchers were furnished to Ld. A.0. But A.O has not considered the same and arbitrarily added Rs 3526459 /- as Net profit at the rate of 8% of Total Turnover which is wrong and bad in Law and should be Deleted. 6. Regarding Addition of Rs 63,00,000/- on account of (Non-current investment we are to submit that details and confirmation of Investment's were furnished to A.O. These investments were made during the course of Business but A.O has wro....
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.... the capacity, identity and the creditworthiness of the lenders before the Lower Authorities and not provided any documents to prove the genuineness of the transaction. Therefore, the findings of the CIT(A) requires no interference and prayed for dismissal of Ground No. 3. 7. We have heard the Ld. DR and perused the material. It is found that the ld. A.O. while making the above said addition held as under:- "During the assessment proceedings, the assessee was specifically asked to prove the identity, capacity and creditworthiness of the lenders and genuineness of statements, and complete name & address of the lenders along with confirmed copy of account of these persons. Thus, the capacity, identity and creditworthiness of the lenders and genuineness of the transaction could not be proved by the assessee. Since the above mentioned unsecured loans of Rs.34,07,113/- are unverifiable without any documentary evidences, unsecured loan of Rs.34,07,113/- is being disallowed and added to the income of the assessee u/s 68 of I. T. Act, 1961. Since, the assessee has furnished inaccurate particulars of its income, penalty proceedings under section 271(l)(c) of the Act are....
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....is the assessee has filed list of sundry creditors without complete address. During the year, the assessee has shown total turnover/sales of Rs.4,40,80,735/-, sundry creditors of Rs.97,36,316/-, and cash in hand shown by the assessee is of Rs. 73,68,573/. Looking to the nature of business of the assessee, the sundry creditors shown of Rs. 97,36,136/- is on a very higher side and huge cash in hand was also shown by the assessee. On 27.12.2016, the A.R of the assessee has filed confirmed copy of accounts of the sundry creditors of Rs. 48,36,315/- only. The assessee has failed to furnish the confirmations and other documents of the balance sundry creditors. As the limitation of the case is on 31.12.2016 and the assessee has not filed documents and evidences regarding balance creditors to prove the identity, creditworthiness and genuineness of the creditors, despite ample opportunities provided to it, therefore, sundry creditors of Rs.49,12,092/- (9736136-4836315) is hereby disallowed and added to the income of the assessee. Since, the assessee has furnished inaccurate particulars of its income, penalty proceedings under section 271(l)(c) of the Act are being initiated separately. 1....
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....e, it is concluded that either no books of accounts are maintained by the assessee-or-the book results are not reliable. Considering, the facts of the case and keeping in view the fact that the assessee has failed to produce books of accounts and bills and vouchers for verification before the undersigned, the book result of profit as declared by the assessee is being treated as non-reliable. Hence, in accordance to the power vested by section 145(3) of the Income-tax Act, 1961, the so called books of accounts as well as book results are being rejected, the same being totally unreliable. 6.1. Looking to the facts of this case, the net profit of the assessee is estimated at 8% of the total turnover of Rs. 4,40,80,735/- as declared by the assessee in the return of income, which comes to Rs.35,26,459/-. During the year under consideration, the assessee made total sales/gross turnover/ gross receipt of Rs. 4,40,80,735/- and declared net profit of (-)Rs. 1,359/-. Therefore, net profit of Rs 35,26,459/- which is hereby calculated at the rate of 8% is being added back to the income returned by the assessee. Since, the assessee has furnished inaccurate particulars of its income, pe....
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....s. Vide order sheet entry dated 22.11.2016, the assessee was required to furnish the source of non current investment shown at Rs. 1,43,00,0000/-. In response to this the assessee has filed written submission on 27.12.2016 and filed copy of account of M/s Maha Matangeshwar Mineral along with partnership deed executed on 09.03.2013. But the source of payment to M/s Maha Matangeshwar Mineral of Rs. 10,00,000/- has not been filed by the assessee. 7.1. Further, the assessee has made non-current investment in unquoted fully paid up shares of Hymn Hospitality Services Pvt. Ltd. of Rs.53,00,000/-. But the details and source of payment made to M/s Hymn Hospitality Services Pvt. Ltd. of Rs.53,00,000/- have not been furnished by the assessee. The assessee has also not furnished complete name and address of the parties and the source of non-current -investment-made during the year of Rs. 63,00,000/-, by it. As the limitation of the case is on 31.12.2016 and the assessee has failed to furnish the source of investment of Rs.63,00,000/- during the year, the non-current investment of Rs.63,00,000/- (1,40,00,000 80,00,000) is being disallowed as unexplained investment and added to the inc....